Second quarter highlights

• Net sales increased to SEK 1,309.6 million (1,217.1), corresponding to growth of 8 percent. Organic growth was 0 percent.
• EBITA amounted to SEK 104.0 million (116.7) and the EBITA margin was 7.9 percent (9.6).
• Items affecting comparability impacted EBITA by SEK -23.6 million (-6.9). Adjusted EBITA (excluding items affecting comparability) increased to SEK 127.5 million (123.5).
• Earnings for the period amounted to SEK 56.3 million (76.7), earnings per share before and after dilution were SEK 1.13 (1.58).
• Operating cash flow rose to SEK 116.1 million (-8.2).
• The order backlog increased to SEK 3,527.9 million (3,129.5).

First half highlights

• Net sales increased to SEK 2,453.0 million (1,954.6), corresponding to growth of 25 percent. Organic growth was 9 percent.
• EBITA increased to SEK 175.9 million (155.3) and the EBITA margin was 7.2 percent (7.9).
• Items affecting comparability impacted EBITA by SEK -25.7 million (-11.7). Adjusted EBITA (excluding items affecting comparability) increased to SEK 201.7 million (167.0).
• Earnings for the period amounted to SEK 85.1 million (98.9), earnings per share before and after dilution were SEK 1.72 (2.09).
• Operating cash flow totalled SEK 193.1 million (66.7).

Significant events during the quarter

• In June, the acquisition of Danish balcony manufacturer Weldmatic A/S was announced.
• Fasadgruppen has won several major renovation contracts, including two schools in Stockholm and four apartment buildings in Oslo.

Events after the end of the period

• Fasadgruppen has been awarded contracts to replace the roofs of 171 terraced houses as well as a renovation of an entire neighbourhood in Copenhagen.
• Fasadgruppen has joined the Science Based Targets initiative.
• Fasadgruppen has entered into a new financing agreement.

Condensed CEO comment from Martin Jacobsson: “Good order backlog growth and improved cash flow”
“Demand for our services remains favourable and the order backlog at the end of the period totalled SEK 3,528 million. This is the highest level ever recorded and represents a sequential increase of around 24 percent since the first quarter. Sales during the first half of the year totalled SEK 2,453 million, an increase of 25 percent compared with the corresponding period last year. An organic growth of 9 percent despite falling material prices during the end of the period points to healthy volume growth.

Adjusted EBITA for the first half of the year improved by 21 percent to SEK 202 million compared with the corresponding period last year, while the adjusted EBITA margin decreased from 8.5 to 8.2 percent. Competition in Stockholm and Copenhagen, which are both major markets for Fasadgruppen, has become somewhat tougher, putting some pressure on margins during the second quarter.

Cash flow improved significantly during the first half of the year and contributed to us almost achieving 100 percent cash conversion for the last 12 months. This improvement is due partly to us not purchasing materials early (as was done last year to lock in lower purchase prices) and partly to the measures that we have implemented to improve the working capital.”

Report presentation
CEO Martin Jacobsson and CFO Casper Tamm will present the report in a conference call and webcast today 15 August 2023 at 08:15 CEST. The presentation will be held in English and will be concluded with a Q&A session.

Link to webcast: https://ir.financialhearings.com/fasadgruppen-group-q2-2023
Registration for participation by phone: https://conference.financialhearings.com/teleconference/?id=200906

A recording of the presentation will later be available at www.fasadgruppen.se.